Reinstatement of Illinois Mortgages

08 Feb Reinstatement of Illinois Mortgages

In order to reinstate a mortgage, you have to pay an amount equal to all payments you have not made, plus all costs and expenses rightfully incurred by the lender up to that point.

As soon as you have paid this amount of money to the lender, the foreclosure must be dismissed. The mortgage and note remain in effect just as if you had never defaulted at all.

In theory, you have the right to reinstate in this manner only once every five years. However, this limitation is in force only if the Court specifically states that the right to reinstatement had been exercised.

You have the right to reinstatement even if a judgment of foreclosure has been entered prior to the expiration of the reinstatement period of 90 days.

If you have found yourself in foreclosure owing to a temporary but now resolved problem, such as illness, surgery, unemployment or any other such reason, you might want to consider your options to reinstate. Here is one time where an invasion of your IRA or 401k plan might be prudent. You probably would be able to do so without penalty even though you would have to pay income taxes on any withdrawal.